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Application of credit cardholder's funds held by issuer; authorization; agreement statement

M.G.L. c. 140D, § 21
in effect
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c. 140D, § 21. Application of credit cardholder's funds held by issuer; authorization; agreement statement Section 21. A person issuing a credit card shall not apply any funds of the cardholder held for any purpose by the issuer of the card in order to satisfy a debt arising from the use of such credit card unless such action was previously authorized by the cardholder in a separately signed agreement whereby the cardholder agrees to pay debts incurred in his open-end-credit account by permitting the card issuer to deduct periodically all or a portion of such debt from the cardholder's deposit account; provided, however, that such action shall not be taken with respect to a disputed item if the cardholder so requests. This agreement shall contain the following statement appearing conspicuously on the face thereof: YOU DO NOT HAVE TO SIGN THIS AGREEMENT IN ORDER TO OBTAIN A CREDIT CARD.
Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXX/Chapter140D/Section21Fetched: 10/20/2026

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